As far as the political and legal aspects are worried, the whole film industry is affected by the danger of piracy which could potentially produce an unfavorable effect on the overall revenue of the film industry. Having said that, copyright laws provide security to the film industry in regards to dissuading piracy.
While the political and legal environment uses protection to film makers, globalization and development of technological aspects have actually increased legal obstacles such as ease of piracy and breaching copyright rights.
It ought to be kept in mind that movies belong to the show business while expense on any form of entertainment is essentially an optional expense which is more or a high-end instead of a necessity. We look at the contrast of the GDP trend with the trend in demand for films, we can see that the two are not straight proportional recommending that any modification in GDP growth does not always bring about a modification in this specific home entertainment.
As far as the social-cultural aspects are concerned, it ought to be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which permits a lot of variety when it pertains to going with a particular segment. Furthermore with majority of the viewers being college or university students with a typical household income of $70,000, the acquiring power of the target audience reveals possibilities of increasing viewership.
With aspects such as 'moms and dads showing an interest in their children's option of home entertainment' and 'higher buying power in homes' due to both parents contributing towards the household income, we can see that the home entertainment service has a great deal of potential for industry gamers.
While technological factors have contributed towards reducing the cost of entertainment with the introduction of multimedia, reality based entertainment, home theatres, cable television networks, the pressure on theatres has increased in term of making the theatre experience richer for customers in order to make it more attractive than enjoying movies in the house. In addition, while developments have actually contributed towards the danger of 'piracy' they have actually also contributed towards ease of storing and distributing movies.